Chandigarh, April 12: Days after scrapping allotments of 48 liquor vends over non-submission of bank guarantees, the Chandigarh excise and taxation department will conduct a re-auction on April 21—this time offering the vends at the same winning bids quoted by the disqualified contractors.
In the first auction held on March 21, the department successfully auctioned 96 of the 97 liquor vends for the 2025–26 fiscal year, generating ₹606 crore—36% higher than the ₹439 crore reserve price. The vend in Palsora alone fetched ₹14 crore, far above its ₹10.22 crore reserve.
However, on April 9 and 10, the department cancelled 48 allotments due to the failure of bidders to submit bank guarantees worth ₹40 crore. To keep the process on schedule, officials are re-auctioning these vends using the earlier winning prices as the new base rate. The reserve price will be adjusted based on the number of days left in the fiscal year.
A senior official from the excise department said, “We are hopeful that the re-auction will be successful and generate good revenue.” So far, the department has recovered ₹23 crore by forfeiting the earnest money and security deposits of the defaulting contractors.
Meanwhile, liquor contractor Sahil Garg, who had won bids for nine vends, has moved the Punjab and Haryana High Court, challenging the department’s refusal to accept his bank guarantee on April 9. He argued that delays in the bank guarantee process were due to procedural hurdles and ongoing legal disputes over the excise policy. According to his petition, when he attempted to submit the guarantee, officials refused to accept it. His plea is expected to come up for hearing next week.
Read more: Liquor Vends Open in Chandigarh After SC Lifts HC Stay
